U.S. Customs and Border Protection (CBP) proposed a new 10-year Inter-Agency Agreement (IAA) with a potential dollar amount of $2.7 billion.
Prior to CBP’s Secure Border Initiative (November 2005), their surveillance methods were archaic. They utilized F-250 pick-up trucks with chains off the back and 2X4s attached, and "swept" the area daily, then counted the footsteps. CBP decided to venture into a Field and Exchange (F&E) investment of surveillance vehicles (around 40 large trucks with masts, cameras and radars) with the plan to start with surveillance of key southern border locations. Their systems, supporting National Security, were initially supported via contract, but the contract support was ineffective. CBP Senior Leadership and Congress debated scrapping the entire program, which would have resulted in a loss of over $60 million.
CBP considered alternative sources for logistics, engineering, and maintenance, repair and overhaul (MRO) capabilities. The FAA was identified as a natural fit because of their capabilities and infrastructure. The FAA has a proven track record of surveillance expertise, tower inspection/maintenance programs, along with distribution, warehouse and depot capabilities. Shared services with another government agency allows CBP to avoid a significant investment in establishing government logistics/depot infrastructures and capabilities.
The FAA/CBP Partnership agreement started in 2009 with basic logistics support. It then expanded to configuration control, tower inspection/maintenance and later agent/operator training. As business increased, a step function was introduced for collections on parts buying, to prevent overcharging CBP for services rendered. As the relationship grew, additional risk protections for the FAA were put into place. FAA requested a longer-term agreement of 10 years. An 18-month pull-out clause was added to agreements.
In 2013, CBP/FAALC was awarded the Oklahoma Federal Executive Board Public Service Recognition Award, as a result of the significant cost savings of more than $5 million. In 2014, CBP moved all logistics support to FAA as their sole provider.
The CBP/FAALC partnership allows the Logistics Center to spread the Allocated Cost Pool to CBP Labor rates, and it reduces costs to FAA and DOD. Currently, CBP is absorbing a share of FAALC’s Allocated Cost Pool. CBP is charged a fee for FAALC Reserves funding requirements and Corporate Overhead is collected to cover support cost of FAA Headquarters and MMAC.
U.S. Customs and Border Protection has made a substantial commitment to a long-term relationship with the FAA. For the past 8 years, they have contracted the FAA Academy (AMA) technical training of operators. In January 2018, CBP sent a letter to (then Acting FAA Administrator) Dan Elwell stating this partnership has saved them $76 million since the inception of the partnership.
The benefits are clear. This partnership has 12 years of proven success. The FAA and CBP are both benefactors, saving millions. CBP has been an "Ideal Customer," who pays on time and honors commitments. The work fits with the FAA niche as part of Shared Services.
Following the money, the IAA does not line out any new type of activity that is not already being completed for CBP. An estimated 70% of the agreement value is "pass-through," or consistent with how parts are currently ordered. The FAA National Airspace System (NAS) would still be the FAALC’s largest customer, with nearly double the amount of activity. The federal headcount supporting FAA would still be higher than CBP, due to the parts side of the business.
Historically, in times of competing priority, FAA work takes precedence. As part of the Technical Operations team of the Air Traffic Organization (ATO), the FAALC provides responsive and cost-effective maintenance of NAS facilities, systems, and equipment to increase the safety, efficiency and security of air traffic services for approximately 50,000 aircraft operating over nearly 30 million square miles every day. The FAALC’s mission is to continue to provide the safest, most efficient aviation system in the world.
